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Dave Riestenberg , Advanced Resources International, Inc.Richard Esposito, Southern Company R&DKimberly Gray, Southern States Energy Board

Establishing an Early Carbon Dioxide Storage Complex in Kemper County, Mississippi: Project ECO2S (FE0029465)

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The Project Team, led by Southern States Energy Board, Mississippi Power Company and Southern Company Services, with technical support from Advanced Resources Inc. and a host of key subcontractors, acknowledge the valuable support provided by the U.S. DOE National Energy Technology Laboratory on this Phase 2 CarbonSAFE field project.

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DisclaimerThis presentation is based upon work supported by the Department of Energy National Energy Technology Laboratory under award number DE-FE0029465 and was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof.

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Project ECO2S Org Chart

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U.S. GOM

Setting the Stage

• New natural gas-fueled electric power and potential for retrofit of existing coal-fueled electric power capacity in the southeast.

• Industrial sources of CO2 emissions are increasing sharply (petrochemical and LNG)

• Electric and industrial sources emit ~1,000 million metric tons per year

• Large volume CO2 transportation systems and CO2 storage complexes will be required in the SE region in support of CO2 capture.

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CarbonSAFE Project ECO2S

The goal of Project ECO2S is to demonstrate that the subsurface at Kemper can safely and permanently storecommercial volumes of CO2

The project team has established a 30,000 acre area of interest which contains gigatonne CO2 storage potential Continued Southern Company support for CCS R&D

U.S. GOM

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The Kemper County Energy Facility was designed to be thelargest IGCC project undertaken, the first to use lignite asfuel, the first to capture and sell CO2, and the first to producemultiple byproducts from initial startup.

However, on June 28, 2017, Southern Company andMississippi Power Company announced they weresuspending start-up and operations activities involving thelignite gasification portion of the Kemper County energyfacility.

The net plant capacity is 582 MW of electricity at peak powerproduction and the plant continues to generate electricityusing natural gas, producing 780 ktonnes of CO2 per year

Project ECO2S continues to characterize the subsurfacebeneath Kemper and evaluate commercial storageopportunities

Kemper County Energy Facility

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ECO2S Data Collection Three characterization/monitoring wells were drilled in 2017 to

test and characterize geologic properties 200 ft of hole core was taken from the Paluxy and Washita-

Fredericksburg reservoirs and the Marine Tuscaloosa shale confining unit

Reservoir fluid sampling and injection tests

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ECO2S Geologic Structure

Appalachian-Ouachita Orogen

K-T Section

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The Reservoirs Rock!!! Major stacked storage potential with >1,300 net feet of

sandstone. Logs and core show sandstone mean porosity of 29% Mean permeability of 3.6 Darcies

Dissolution Porosity, Paluxy Formation

Log Porosity Histogram

Core Perm Histogram

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Confining Units Seals include mudrock and chalk

Smectititic clay in all units with large amounts of bound water Soft and pliable and thus very difficult to fracture

Mudrock units are likely effective seals; slow permeation of the mudrock pore systems makes significant migration of injected CO2out of the storage complex unlikely

Pressure decay permeametry tests indicate nanoDarcypermeability

Marine Tuscaloosa Shale

Shell

Pinstripe bedding

Lenticular bedding

Burrows

MPC 10-4, 3183 ft

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But what will happen when we put CO2 in there?

• Dissolution of calcite, siderite, muscovite and smectite/illite lead to an increase in porosity of ~11%

• Calculated* perm increases 2.6 to 11.5 Darcies

*Kozeny-Carman approach

Reactive Transport Modeling

CO2 Flow Studies• Residual water and CO2 saturations• Relative permeability curves• Micro-fluidics - impacts of CO2 foam on

conformance

Initial and residual CO2 saturation along the length of a core sample

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ECO2S Storage Complex Capacity

CO2 Storage Reservoir

P10Capacity(MMmt)

P50Capacity(MMmt)

P90Capacity(MMmt)

Massive/Dantzler 60 120 200Wash.-Fred. 280 540 920

Paluxy 160 310 530TOTAL 510 970 1,660

Washita-Fredericksburg

Massive/Danzler

Paluxy

Each of the three potential storage zones have commercial capacity

Together the three storage zones result in a gigatonne capacity storage complex that has the potential to act as a regional hub

DOE methodology for site-specific saline storage efficiency calculation based on fluid displacement factors for clastic reservoirs where net pay, net thickness and net porosity are known of 7.4% (P10), 14% (P50) and 24% (P90) (Goodman et al., 2011)

Regional CO2 Sources

Paluxy Formation Structure

<100 miles

<200 miles

Power Plants, 7 MMt/yr

L. Tusc Massive Structure

Power Plants and Industrial, 35 MMt/yr

Kemper

Kemper

Kemper

Southern Company’s Interest• Projects like ECO2S inform Southern Company on the benefits and costs

associated with CCS.• Low-cost storage at ECO2S due to exceptional geologyo $2.00 - $4.00 USD per metric ton

• Studying natural gas combustion at Kemper makes sense – it’s the fuel of the future in the Southeast (e.g. NCCC expanding natural gas capture studies)

• Applying data to internal resource planning and modeling (See Esposito et al., Reconsidering CCS in the U.S. Fossil-Fuel Fired Electricity Industry Under Section 45Q Tax Credits, Greenhouse Gases: Science and Technology in press)

• Evaluation of Kemper site as a regional storage hub

Finishing up our CarbonSAFE Phase II

• Injection simulation and optimization – modeling and reservoir simulation studies

• Comprehensive ECO2S risk assessment - two workshops to date, 114 risk scenarios identified, 229 risk treatments proposed

• ECO2S storage site commercialization plan – where does a large regional storage hub fit in the southeast’s CO2 footprint

• Define an MVA system• Outreach